The Bank of England’s chief economist Huw Pill has said that the decision of whether to raise UK interest rates further is “finely balanced”.
Speaking in Marrakech, where the IMF and the World Bank are holding their annual meeting, Pill pointed out that much of the Bank’s earlier rate hikes have yet to “come through” and affect the real economy.
Pill said: "We have done a lot over the last two years. A lot of that policy is still to come through.
“Whether we’ve done enough - or whether we have more to do – I think is becoming a more finely balanced issue.
"But we will do what we need to do in order to have inflation at 2% on a lasting basis.”
But he said it is premature to talk about rate cuts and the idea that policy stance will turn on a sixpence is overdrawn.